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Jul 29, 2009
07/09
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. >> what enron loophole? you're sort of confusing this. give me one enron loophole. if there's a loophole against the law, why not close-knit what does this have to do about the price of oil. >> i'm not proud of it, the president i worked for president bill clinton signed at the end of his administration a bill pushed by enron that allowed certain trading and derivatives to be deregulated offshore. as a result, from that point forward, you can plot this on a graf, put it on the screen. >> we had huge swings in oil. >> you can show disparity between spot markets the real thing and what warren buffet called these financial instruments of mass destruction, the derivatives. >> oh. all right. i appreciate that. by the way, i thought bill christianity w clinton was a pretty good president in some respects. i'll go back to steve forbes. we had massive swings in energy for years. right now like today, oil price dropped four bucks, down to $63. i don't know if they're going to 40. you can find analyst whose think they are and find distinguished people like boone pickens who t
. >> what enron loophole? you're sort of confusing this. give me one enron loophole. if there's a loophole against the law, why not close-knit what does this have to do about the price of oil. >> i'm not proud of it, the president i worked for president bill clinton signed at the end of his administration a bill pushed by enron that allowed certain trading and derivatives to be deregulated offshore. as a result, from that point forward, you can plot this on a graf, put it on the...
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Jul 13, 2009
07/09
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you can use any stock in the world, including enron and as long as you have a stop loss -- >> what about transaction costs? >> can i tell you something? >> barron's magazine once again, that long-run adage, you can't trade your way. you cannot do it. >> if you held on -- >> after taxes and after transaction costs. >> that's right. but if you held on to enron and world com and lehman's, and held on, you don't have to pay capital gains. >> jeremy segal, what's your response to that? >> well, i think if you do trailing stop losses, let me tell you in a volatile market, you're stopped out of 90% of your stocks at the low. >> which is terrific when it's up 50% in a volatile stock market like we've had. >> not in normal markets, it's very hard to do that. and transactions -- >> 90% of your stock. the normal market's 20% is plenty of room for blue chips. >> jeremy segal, could we be on the verge of a major long run sell off in treasury bonds here? >> i think treasury bonds are the toxic assets of the next decade. >> let me ask you. could we be on the verge -- this appeals to me the most, becaus
you can use any stock in the world, including enron and as long as you have a stop loss -- >> what about transaction costs? >> can i tell you something? >> barron's magazine once again, that long-run adage, you can't trade your way. you cannot do it. >> if you held on -- >> after taxes and after transaction costs. >> that's right. but if you held on to enron and world com and lehman's, and held on, you don't have to pay capital gains. >> jeremy segal,...
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Jul 8, 2009
07/09
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the year 2000 when my former boss, bill clinton, signed it into law, and i'm not proud of that, the enron corporation lobbied for and got what the senate committee on investigations said were the enron loopholes. what does that mean? what it means they were able to get all commodities regulated in the future except -- except -- for energy and oil. electronic exchanges became unregulated. off shore, and multinationals unregulated. what did that do? by the way, do you know what that law also included, an exemption from state gambling laws, why, because gambling and the effect, the effect was to raise prices. artificially, not based on supply and demand. >> is an issue here. you make some good points. but dick armey, look, there is a good point here, limiting trading, that crosses a line, dick. >> right. >> that moves me toward price controls. and do you know what, these guys, what is it, sarkozy and gordon brown from england and france, they say we need supervision in markets. i say those guys need adult supervision and i think the market ought to supervise oil prices. what's your take? you
the year 2000 when my former boss, bill clinton, signed it into law, and i'm not proud of that, the enron corporation lobbied for and got what the senate committee on investigations said were the enron loopholes. what does that mean? what it means they were able to get all commodities regulated in the future except -- except -- for energy and oil. electronic exchanges became unregulated. off shore, and multinationals unregulated. what did that do? by the way, do you know what that law also...
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Jul 11, 2009
07/09
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you took a lot of f coananiethat i thinindodo wl in a very slow enronment, talking aboututomome of t the dgsgssome of the slower chs. ansaid that they have totoo o here. exaiaito people why they donon't fit. because a lot of peoeople owow that the e ecomymy inot strong. t ty want to be defensiveve. >> thehe pprpriery portfolio i have, i'm working wiwith ainine amount o of shsh. i have to mamake aececion. where dodo a allate. do i want to stay y fefense andd just enjoy t t yiyields hoping that eventually, the other stocks will become werful again. toto ccentrate my firepower, make micekek uonon l the lo-term bet. the babas s anhome builders are going to come ouout ofhihithing withth t n nextwo years and th'll be some multiple as s they are now. >>ot a trade. >>>> n not a trade. >>neneloyment goes above 10%0%. do you change yoururinind? >> no. i expectctnenempyment to go as highgh a1111% ich it did in 19. okay, , c camout of that receioio you bought citibank in n 1981 you made a tonon omomone when you b bghght in 1991, prprincelalali did. you mamade1010 bion. in 20000 2 200 we had the
you took a lot of f coananiethat i thinindodo wl in a very slow enronment, talking aboututomome of t the dgsgssome of the slower chs. ansaid that they have totoo o here. exaiaito people why they donon't fit. because a lot of peoeople owow that the e ecomymy inot strong. t ty want to be defensiveve. >> thehe pprpriery portfolio i have, i'm working wiwith ainine amount o of shsh. i have to mamake aececion. where dodo a allate. do i want to stay y fefense andd just enjoy t t yiyields hoping...
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Jul 11, 2009
07/09
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that post enron crackdown that passed congress in 48 hours, it contained questionable measures that languished in congress unapproved for five years and businesses are still hurting from it. small companies spend a lot of their profit growth on new accountants, big companies take their new stock listings to exchanges overseas and sarbanesoxley did nothing to stop the new countdown, one congress is using for a new round of photo ops. it's photo overtime. we start with this picture, the got ya shown around the world. it appears to show president obama eyeing the derriere of a 16-year-old. it seems niclolas sarkozy is getting an eyul aswell. jasowith the "huffington post" and tika is the founder of tycoon publications, what do you think. >> i think the president is getting a bum rap. his picture was taken out of context. when you look at the video, it's a very different image than the photograph, the still photograph really has niclolas sarkozy, th president of france sort of staring at this young girl with a weird expression on his face and the president got tarred and feathered by the same brus
that post enron crackdown that passed congress in 48 hours, it contained questionable measures that languished in congress unapproved for five years and businesses are still hurting from it. small companies spend a lot of their profit growth on new accountants, big companies take their new stock listings to exchanges overseas and sarbanesoxley did nothing to stop the new countdown, one congress is using for a new round of photo ops. it's photo overtime. we start with this picture, the got ya...
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Jul 10, 2009
07/09
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ththee guys were i in a stete of terminal epepreion, theech bubule but, enron scandal raging, andraqinvasion imminent, , we were still hurtig from 1111 more than a y yea before that. janunuy,y, 23. look a at this stock chart. ound the time t the were so prpresd to our market higigh mid-october, l right.t. stococent up, s&p 500, veryy broadindex,72%, lieieand gentleleme in that nice ssss than five year peperi %, that is anan average annual return 1212 per r ye over that entire time right t wh thoseeosere elelinso depressssed itit'sbeautiful beautiful thing. i keke avavin out whahat folloe but wt follolows can always lead to the next i if only we work hd at it. i'm not sayayin we canrepeat ththat in t next five yeyes,s, e real fact is, just donon't kkno youunonow atat th guys in sun valley, t the don'ttnow eieier. no do the experts on wall stetet o my buddy,hehe b basenet rats at the bg, all o o us, yo get right d dow to, a are guguesngngn bbetngng. y not sell a little hope. new n numrsrs for jobless clala cacameut today. they were e blkk but not nearly as bleak as expectcted think we wll have
ththee guys were i in a stete of terminal epepreion, theech bubule but, enron scandal raging, andraqinvasion imminent, , we were still hurtig from 1111 more than a y yea before that. janunuy,y, 23. look a at this stock chart. ound the time t the were so prpresd to our market higigh mid-october, l right.t. stococent up, s&p 500, veryy broadindex,72%, lieieand gentleleme in that nice ssss than five year peperi %, that is anan average annual return 1212 per r ye over that entire time right t...
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Jul 13, 2009
07/09
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was at the beginning of that corporate crime wave, didn't get as much time as like jeff skilling from enron got and -- >> what did skilling get? >> skilling got 25 years. ebbers 25. >> 25 years, skilling 25 years. >> the judge just set the bond for the ex-cfo in stanford financial at $500,000, pertinent to the conversation we are hearing this now. go ahead. >> so, take ebbers, ebbers is a gay who was an $11 billion accounting fraud, went to trial, didn't cooperate in anyway way, didn't admit he was guilty. it was a long, drawn-out trial, takes a huge amount of resources, he got 25 years. you are talking about someone like dryer, i disagree with jim completely, drier, 145 years for pleading guilty doesn't matter if you are caught red-handed, might as well make the government go through all the work of proving each detail of that case beyond a reasonable doubt. >> what does the public think? this is about the public perception that white collar criminals get treated better than -- >> the money back. >> minority people, also trying to get him to sing, you know, a lot of people like myself are
was at the beginning of that corporate crime wave, didn't get as much time as like jeff skilling from enron got and -- >> what did skilling get? >> skilling got 25 years. ebbers 25. >> 25 years, skilling 25 years. >> the judge just set the bond for the ex-cfo in stanford financial at $500,000, pertinent to the conversation we are hearing this now. go ahead. >> so, take ebbers, ebbers is a gay who was an $11 billion accounting fraud, went to trial, didn't cooperate...
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Jul 24, 2009
07/09
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>> no, whatever the rationales were originally, we saw this problem first arise when enron hit, and the fact that people could create these special purpose vehicles. and now we're seeing it all over again. the fact of the matter is, if a corporation is exposed to potential liability, it should show up on its financial statements. >> yeah. i mean, and also, i mean, another thing as we're watching this hearing, we're watching tim geithner make this huge, you know, plea for this consumer protection authority. has anyone asked the question, what is it going to cost? >> well, that's the other problem with this. we're seeing it now with health care. we clearly need regulatory reform. the difficulty is, we're assuming all sorts of new regulatory burdens, and somebody is going to have to pay for that. >> yeah. >> and there isn't enough money to go around, although the government seems to keep printing it. so i think that there's a real disconnect between what they want to achieve, which is all very valid, and how they're going to get there, which i think raises serious questions. >> rick santel
>> no, whatever the rationales were originally, we saw this problem first arise when enron hit, and the fact that people could create these special purpose vehicles. and now we're seeing it all over again. the fact of the matter is, if a corporation is exposed to potential liability, it should show up on its financial statements. >> yeah. i mean, and also, i mean, another thing as we're watching this hearing, we're watching tim geithner make this huge, you know, plea for this...
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Jul 16, 2009
07/09
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when this country experienced enron, there was outage from coast to coast. people who are not informed about the material things that were happening and not happening within that company. pause the shareholders were left in the dark. my concern is the lack of transparency to the shareholders, and to the public at large, not only as investors, but as investors -- as shareholders, if you will, as being taxpayers in this country. so the question that i have, i want to get -- follow up on mr. jordan's question. a little deeper into why you did not share this information with other regulatory agencies, for instance, the s.e.c. why didn't you feel compelled to share informatwith them? >> first of all, we were working with the regulators that were involved with putting the financial assistance together. that was the effort. the -- >> but -- >> but the -- the -- responsibility, it is not a treasury secretary's job to get between a company and its -- and the s.e.c., for instance. >> but my understanding -- >> i've been around long enough to know, these are critically
when this country experienced enron, there was outage from coast to coast. people who are not informed about the material things that were happening and not happening within that company. pause the shareholders were left in the dark. my concern is the lack of transparency to the shareholders, and to the public at large, not only as investors, but as investors -- as shareholders, if you will, as being taxpayers in this country. so the question that i have, i want to get -- follow up on mr....
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Jul 9, 2009
07/09
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ththe janese currencycy, widely considered to one of the safest destitinaonon under this enronment briefly touchehe99 yen before retreating tohe 93 leleve this hurt automakaker ke toyota anan honda as well ass elelectni s. afr the bell, f fas reiling, the operator of ararel said its oup nett profitumumd %% in ththpast nine months. it upgraded ss physysic deficit beeeen n.n. also in positive news, t thesasd ththat b by 10%. the plan is currently operating full pacity, manufacturing 90,000 modelsasast momont an in ann interesting develolopmt,t, chinina' soverei wealth fund,hina investmenen corp., h hasamamed fmeme shiba chairman andcucurrt chairman o f the tokyoo stock changee as a member of its iter natural.l. >>>> miyiyu san,n, thank you ve much f forhaha chris s still to kol come, we'll have moree just aerer the praeae v. >>> how u.s. f foohshs a shaping uptake a look here. >>> anddelcometo cnbc's ororldde exchange." hererere some of the toptotoes wewe'rwawatcng from around the worlrld. the trsusury department hasas veveed a t tmmmmedown versision of i program t to ve private investorss b
ththe janese currencycy, widely considered to one of the safest destitinaonon under this enronment briefly touchehe99 yen before retreating tohe 93 leleve this hurt automakaker ke toyota anan honda as well ass elelectni s. afr the bell, f fas reiling, the operator of ararel said its oup nett profitumumd %% in ththpast nine months. it upgraded ss physysic deficit beeeen n.n. also in positive news, t thesasd ththat b by 10%. the plan is currently operating full pacity, manufacturing 90,000...
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Jul 24, 2009
07/09
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. >> after enron, what a concept, you know, to consider off balance sheet, item might affect on balance sheet. >> no risk, apparently. >> yeah, yeah. could be a problem. >> rebecca, you're right. this morning not quite the frenzy that we saw yesterday. just take earnings of 5 cents ahead of expectations, but the oil field service company, again, suffering from a decline in north american drilling activity. company says drilling in the u.s. and canada reached a five-year low. and they reiterated it does not expect a recovery before next year. kind of what we heard from halliburton earlier in the week as well. >> on the morning show, you not only have to do the stuff that happens before that morning but also anything after 4:00, it's fair game and it's ours. a few stock that did report after the bell yesterday, the big one, the granddaddy of them all, the granddaddy of all tech, microsoft reporting earnings per share that were two cents below expectations. a dropoff of global pc sales weighed on both revenue and profits. also, profits negatively impacted by charges relating to its forthco
. >> after enron, what a concept, you know, to consider off balance sheet, item might affect on balance sheet. >> no risk, apparently. >> yeah, yeah. could be a problem. >> rebecca, you're right. this morning not quite the frenzy that we saw yesterday. just take earnings of 5 cents ahead of expectations, but the oil field service company, again, suffering from a decline in north american drilling activity. company says drilling in the u.s. and canada reached a five-year...
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Jul 21, 2009
07/09
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. >> you know, enron, worldsocom, drexel, worked very well, the bankruptcy regime. do you agree that it's very important that you force creditors to internalize the cost of their credit decisions? >> absolutely. otherwise you ever a too big to fail institution which doesn't have any discipline other than the regulatory oversight. >> so this regime would totally reject the too big to fail? i mean you would not be asking taxpayers to guarantee or back stop losses? >> absolutely. i think too big to fail is an enormous problem, if we don't do anything else, we need to solve that problem. this is a critical element in solving it because it means that creditors would take losses f there are resolution costs, the presumption is they would be paid by assessments by other financial companies. >> republicans have proposed our financial services regulatory reform proposals includes an expedited bankruptcy within the bankruptcy code. and i would ask you to pay a particular attention to that. one thing that i'm also concerned about is even having the financial system take those
. >> you know, enron, worldsocom, drexel, worked very well, the bankruptcy regime. do you agree that it's very important that you force creditors to internalize the cost of their credit decisions? >> absolutely. otherwise you ever a too big to fail institution which doesn't have any discipline other than the regulatory oversight. >> so this regime would totally reject the too big to fail? i mean you would not be asking taxpayers to guarantee or back stop losses? >>...
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Jul 21, 2009
07/09
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if it you did the auditing of the company, you were no longer in the wake of the enron scandal allowed to do consulting as well. tougher rules for the agencies. >> the s.e.c. would have powers to regulate the industry, according to reuters, and this happens when they go rating shopping, looking for another company to rate them. so that would be something that i think would be of interest to creditors. >> because they would be looking for a better -- rating. yes. let's get back to capitol hill, where ben bernanke continues his testimony. >> and i understand truly. i heard people say there are signs of stabilization. you didn't mention that you think there has been a peak in unemployment. i guess a peak has gone from 680,000 a month down to $500,000 a month, we're losing jobs. that's significant, and i think as time goes on, you're going to lose fewer and fewer jobs each month, because fewer and fewer people are able to be laid off. but we've gone from the subprime debacle, and it seems like now we're going through a second round in the residential. and that's individuals who had good lo
if it you did the auditing of the company, you were no longer in the wake of the enron scandal allowed to do consulting as well. tougher rules for the agencies. >> the s.e.c. would have powers to regulate the industry, according to reuters, and this happens when they go rating shopping, looking for another company to rate them. so that would be something that i think would be of interest to creditors. >> because they would be looking for a better -- rating. yes. let's get back to...